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CA Intermediate · Taxation · GST in India - An Introduction

Meera Textiles of Surat, a registered supplier, sends goods to a customer in Jaipur (Rajasthan). The goods move from Gujarat to Rajasthan. Which tax is leviable on this supply under the GST framework?

IGST only is leviable, because the goods move from Gujarat to Rajasthan, making it an inter-State supply. IGST is levied by the Centre on inter-State supplies, whereas CGST and SGST apply together only when supplier and place of supply are in the same State.

  1. ACGST and SGST of Gujarat
  2. BIGST onlyCorrect
  3. CCGST and SGST of Rajasthan
  4. DOnly central excise duty plus VAT

Explanation

A supply of goods where location of supplier and place of supply are in different States is an inter-State supply. Inter-State supplies attract IGST, which is levied and collected by the Centre. CGST plus SGST applies only to intra-State supplies, so the other GST options are wrong.

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